Cost of Living in Merced, CA

With a cost of living index of 103, Merced, CA is somewhat more expensive than average. Living here is 3% more expensive than the national average and 41% below the California state average of 144. With a population of 89,766, Merced is a mid-sized community that balances access to services with a more manageable cost of living compared to larger metros.

Housing costs are the biggest factor in Merced's cost of living. The median monthly rent is $1,293 (2% below the US median of $1,319), and the median home value sits at $347,700 (14% above the national median of $304,900). At current prices, the median home costs roughly 5.8x the median household income — a stretch for many buyers, though not uncommon in today's market.

The median household income in Merced is $59,938, which is 20% lower than the national median of $75,149. Residents spend roughly 26% of household income on rent. This is near the 30% threshold that financial experts generally consider the upper limit of affordability.

Climate is another factor for anyone considering a move to Merced. The area sees an average annual temperature of 62.3°F, with summers averaging 77°F and winters around 48°F. Annual rainfall totals 11.8 inches spread over roughly 56 days. The mild climate is a draw for many residents and keeps utility costs moderate year-round.

Everyday prices in the Merced, CA (Metropolitan Statistical Area) metro area tend to run above the national average. Out of 6 common grocery and utility items tracked by the Bureau of Labor Statistics, 6 are priced higher than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.